Our Business Strategy

The focus lies on the strategic acquisition of companies where the Executive Team and Advisory & Investment Committee members have the experience, network and ‘know how’ to accelerate the growth and underlying valuation within twelve months of acquisition. These companies may be series-C and above companies or business units within larger corporations where the asset can be spun out to drive greater value creation.

FAT SPAC’s team have the ability and expertise to jump in as C-suite or board members of these acquired companies to further accelerate value as required.

We are targeting a Technology-led company that solves for the multi-billion dollar opportunities in Southeast Asia in the fields of Supply-Chain, Sustainability/ESG, E-Commerce, Big Data and the like or can take advantage of the monetization opportunities stemming from a rapidly growing middle class and their evolving consumption needs.

Our focus will be on an acquisition where we accelerate value.

Acquisition Criteria

We are clear on our ten main criteria that we assess to identify suitable targets, shortlist them and then subsequently engage in a deeper due diligence and negotiation to execute a successful de-SPAC event.

Sound fundamentals and proven economics

The target needs to show the ability to drive revenue from multiple sources/customers ideally from longer- term and recurring business commitments and with the potential to expand outside of its core market through digital or physical footprint expansion. Measurable Customer Life Time Value with clear revenue levers, Effective go-to market strategy with clear Cost of Acquisition and retention plans, view on its Path to Profitability (medium to long-term) and capital structure to support (debt/equity).

Market leadership and defendability

Focus on a target that has already established a leading position within at least one industry or segment or has a leading technology, business-model or product capability that would allow the target to capture significant market share from other players. Medium to High barrier of entry for new players to come in due to regulatory considerations, product stickiness, market fit, superior product/service against competition, etc.

Strong management team and culture

Focus on targets that have strong and complementary management teams with a proven track record of building business, driving sustainable growth, long-term competitive advantage and making sound strategic decisions for their company, as well as operating with a transparent corporate culture anchored in strong values benefiting its stakeholders as well as the communities they engage in.

Scalability in large addressable markets

The target needs to show the capability and willingness to be able to significantly scale their operations and effectively deploy the capital stemming from the business combination to accelerate their growth trajectory. Focus on targets that have the potential to outperform in growing and evolving total addressable markets (TAMs) and total desirable markets (TDMs) that create the opportunity for attractive long-term growth.

Appropriate and acceptable valuations

The target needs to have a substantiated valuation north of USD100M in their previous funding round (Series C and above) rooted in proven economics and/or competitive advantage.

Opportunities for inorganic growth

Focus on companies that can serve as a platform for future synergistic acquisitions and/or can benefit from the public currency afforded by access to equity capital markets and global investor exposure via a de-SPAC.

Stage of business

Revenue generating with an already active and/or committed customer base ranging from Growth Stage to Late Stage companies.

Sector

We are not limiting our focus on a single sector but specifically are looking for a technology-led business as the anchor for growth and scale. Sub-sectors may include supply-chain, e-commerce, fintech, Agri-tech, ESG/sustainability, food-tech, transport and logistics, gaming, SaaS, etc. We believe that we are already in the 4th industrial revolution where we see the convergence of sectors via large-scale machine learning happening at speed as well as increasing automation, smart technology and internet of things that connects multiple sectors and solving multi-dimensional use cases.

Geographic coverage

Our target company is not limited to companies already incorporated in Southeast Asia but companies globally that have solutions that can scale and are applicable to the Southeast Asian market. We define Southeast Asia to be principally the countries of Singapore, Malaysia, Indonesia, Thailand, the Philippines, and Vietnam, but also include emerging markets such as Cambodia, Laos, Myanmar, Brunei and Timor Leste.

Cap table

Sufficient paid-in capital raised to date. Strategic long-term investors in the cap table as well as access to family offices, private equity and government-linked funds